Nigeria’s pension assets hit ₦31.48 trillion in 2026 as PenCom clears arrears, raises payments

Nigeria’s pension assets rose to ₦31.48 trillion by June 2026, up from ₦20.79 trillion in July 2024, a gain of about ₦10.69 trillion. The National Pension Commission says its reforms are raising monthly payments, clearing outstanding benefits and cutting the wait for retirement income.

PenCom Director General Omolola Oloworaran disclosed the figures at the 2026 PenCom Media Conference in Abuja. She said 938,229 Nigerians joined the Contributory Pension Scheme within the same period.

Higher monthly pensions, cleared arrears

Oloworaran said Pension Boost 1.0 increased monthly pensions for more than 241,000 retirees under the Contributory Pension Scheme. Total monthly payments rose from ₦12.15 billion to ₦14.83 billion, an increase of ₦2.68 billion. Some beneficiaries received cumulative increases of up to 100 per cent after additional adjustments.

Pensioners under the defunct Nigeria Social Insurance Trust Fund received their first benefit review in 21 years, leading to a 1,173 per cent increase. Outstanding arrears of ₦8.7 billion have been paid to 2,116 retirees under that arrangement.

A ₦758 billion intervention bond approved by President Bola Tinubu enabled the Federal Government to settle inherited pension liabilities. Payments reached 957,045 beneficiaries, including retirees whose entitlements had remained unpaid for years.

Faster approvals, exit benefits

PenCom announced a zero waiting time policy to ensure federal retirees begin receiving pensions immediately after leaving service. It also reduced the processing period for retirement benefit approvals from as long as 21 months to 48 hours under a mandatory service standard for Pension Fund Administrators.

The Exit Benefit Scheme, effective January 1, 2026, gives qualifying employees of treasury-funded ministries, departments and agencies an additional payment equal to their total annual emoluments. Eligibility requires at least 10 years of qualifying service. The first 175 retirees received approximately ₦1.1 billion in August, Oloworaran said.

PenCom plans to introduce PenCare, which will offer essential healthcare at no cost to eligible low-income retirees. Its pilot phase will target 30,000 beneficiaries. A Minimum Pension Guarantee is also planned for eligible retirees under the contributory scheme.

Enforcement, inclusion and pension week

Oloworaran said accredited pension agents and the Personal Pension Plan would help extend coverage to informal-sector workers. She warned employers against deducting contributions without remitting them to workers’ Retirement Savings Accounts, describing the practice as a breach of trust and the law.

Cumulative recoveries from defaulting employers reached ₦36.6 billion as of July 2026. The inaugural National Pension Week, scheduled for October 26 to 30, will promote pension awareness, inclusion and retirement planning.

Oloworaran pledged stronger regulation and improved service delivery to ensure workers and retirees receive their entitlements when due.

Earlier, Premium Pension and Trustfund Pensions announced plans to merge into Premium Trustfund Pensions Limited. The merger notification was published through the Federal Competition and Consumer Protection Commission and remains subject to regulatory approvals, BusinessDay reported. It would create the country’s third-largest Pension Fund Administrator by assets.

For workers and retirees, the key test will be whether faster approvals, higher payments and the new schemes reach more beneficiaries beyond the pilot phases.